Variable Base Rate (Definition needed)

Fishyfreak

Hi folks,

My 5 years fixed Mortgage is up in June. I dug out the original loan agreement, it says that after 5 years the loan will convert to the "Variable Base Rate".

Can anyone clarify if this means their standard variable rate or is it possibly a tracker. The use of the word "base" is confusing as none of the rates advertised on the EBS Website have it in the wording. Praying it means tracker but knowing my luck probably not!

Thanks in advance.

cookie1977

I'd imagine it's the standard variable rate but ring your bank to verify

Fishyfreak

Thanks, i'll give them a ring today but chances are they'll try to fob me off and insist that "variable base" means "standard variable rate".

It's just a strange wording and I was hoping someone working in banking would have an idea. I'm sure i'm not the only person with this type of loan agreement.

killers1

Fishyfreak wrote: »

Thanks, i'll give them a ring today but chances are they'll try to fob me off and insist that "variable base" means "standard variable rate".

It's just a strange wording and I was hoping someone working in banking would have an idea. I'm sure i'm not the only person with this type of loan agreement.

If you were moving to a tracker at the expiry of the fixed rate your original offer would show that at expiry of the 5 yrs your new rate would be ECB +X. If it just says Variable Base Rate I'd imagine it'll just be the SVR. Was the 5 yr fixed the rate you opted for when you purchased or were you on a different rate prior to that?

Fishyfreak

killers1 wrote: »

Fishyfreak wrote: »

Thanks, i'll give them a ring today but chances are they'll try to fob me off and insist that "variable base" means "standard variable rate".

It's just a strange wording and I was hoping someone working in banking would have an idea. I'm sure i'm not the only person with this type of loan agreement.

If you were moving to a tracker at the expiry of the fixed rate your original offer would show that at expiry of the 5 yrs your new rate would be ECB +X. If it just says Variable Base Rate I'd imagine it'll just be the SVR. Was the 5 yr fixed the rate you opted for when you purchased or were you on a different rate prior to that?

Thanks for your reply. Yeah, it was fixed from the very start of the mortgage. Looks like I'll be moving from one crippling interest rate to another

themoneyguy

Im sorry.

Unless it states a margin I would expect it to mean the variable Rate

nlgbbbblth

Standard variable. Not a tracker.